(Yicai) Aug. 29 -- Shares in Mustang Battery advanced as much as 2.6 percent today after the Chinese maker of dry cell batteries, which are mainly used in portable electronic devices, said it will invest CNY335 million (USD47.1 million) to build a zinc-manganese battery production base in Vietnam to circumvent trade frictions.

Mustang Battery’s share price [SHA:605378] closed up 1.3 percent at CNY14.61 (USD2). Earlier in the day it hit CNY14.79.

The factory will be built in two phases, the first costing CNY225 million (USD31.7 million) and the second costing CNY110 million, the Ningbo-based company said yesterday. No further details, such as the location, types of products, production volumes or construction timetable were given.

The new plant will help the company respond more flexibly to macro environment fluctuations, industrial policy adjustments and changes in the international trade pattern, said Mustang, which produces around three billion batteries a year and gets about 85 percent of its income from overseas clients. The firm will leverage Vietnam’s good industrial foundation and geographical advantages to better serve its customers, it added.

Despite the sluggish global economy and geopolitical tensions, Mustang logged a 83 percent jump in net profit in the first half from the year before to CNY68.2 million (USD9.6 million), according the company’s latest financial report released yesterday. Revenue soared 25.5 percent to CNY526 million (USD74.1 million).

Editor: Kim Taylor